Weir Group PLC on Tuesday reiterated its full-year guidance, following third-quarter trading in line with expectations.
The Glasgow-based mining engineering company said minerals orders in the third quarter totalled £479 million, growing 7.6% year-on-year from £445 million and rising 4.6% from £458 million in the second quarter.
Weir said that after-market demand in the minerals division was driven by ore production trends and installed based expansion, whilst sequential movement reflected typical seasonal patterns. It expects after-market trends ‘to continue to be positive in the fourth quarter’, with an ‘incremental £14 million multi-period order booked in October’.
Orders for its Esco brand during the three-month period were £157 million, down 5.4% from £166 million last year and falling 4.8% from £165 million in the second quarter. This was primarily due to the phasing of large dredge and oil sands orders in comparison to last year.
The company reiterated its full-guidance, forecasting growth in constant currency revenue and operating profit, with operating margins of around 18%.
Chief Executive Officer Jon Stanton said: ‘We are capitalising on growing interest for our sustainable solutions with major orders received for the Reko Diq project and the OCT expansion, as well as good momentum on brownfield projects. After-market orders were in line with our expectations and reflect high levels of activity in core mining markets with the mine specific factors seen in first-half moderating.
‘Going into the fourth quarter, we expect orders to continue to develop positively, and we reiterate our 2024 guidance of growth in constant currency revenue and operating profit, together with achievement of our margin and cash conversion targets.’
Shares in Weir were up 0.2% at 2,060.00 pence each in London on Tuesday morning.
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